Different Ways to Lower Car Insurance Rates
Shopping around, qualifying for discounts, and raising your deductible are ways to lower car insurance rates. Compare quotes from companies using our online tool and find low car insurance rates.
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Tracey L. Wells
Licensed Insurance Agent & Agency Owner
Tracey L. Wells is a licensed insurance agent and Farmers insurance agency owner with 23 years of experience. He is proud to be a local Farmers agent serving Grayson, Georgia and surrounding areas. With experience as both an underwriter and agent, he provides his customers with insight that others agents may not have. His agency offers all lines of insurance including home, life, auto, RV, busi...
Licensed Insurance Agent & Agency Owner
UPDATED: Dec 26, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.
Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Dec 26, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.
Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- If you want to lower your auto insurance rates, you need to learn shop around
- Buy a car that is can get you discounts, like a sturdy, safe car or a hybrid vehicle
- Sometimes raising your insurance deductible can save you money in the long run
- Always compare several insurance providers before choosing one to purchase from
Car insurance premiums are on the rise and, given the high prices of new automobiles and the number of new drivers on the road, it is of little wonder why.
Millions of Americans know they are paying too much for their car insurance but do not know how to get a discount on their standard rate.
Read through these tips for decreasing car insurance rates and then enter your ZIP in above to start comparing car insurance rates today!
Shopping Around for Cheap Car Insurance
The first tip is simple: learn to shop around.
Accepting your insurance company’s default premium is the worst thing you can do if you really want to start paying less for your insurance!
The car insurance company somewhat takes your business for granted.
They have already categorized you and hope that you will continue paying the same premium as long as you can afford it.
What if you tell the insurance company that you are not willing or able to make the same premium payment? Or what if you tell the insurance company that you are willing to sign with a new insurance provider if it means reducing your monthly bill?
One of two things will happen:
- The insurance provider will try to figure out a way for you to save money to keep your business.
- You will actually go out and search for other insurance providers who meet your criteria for a new policy.
Remember that these insurance providers competitively price their premiums and change their rates on a regular basis. It is best to get at least three different comparison prices before you make your choice.
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What Cars are Worth Covering?
The insurance company will usually only provide a discount if you can also provide them some kind of benefit.
For example, some insurance providers are willing to provide a discount for hybrids cars or cars that are built with special safety features.
Some cars are well known throughout the industry for having fewer claims or for having less expensive repairs, and so they will be discounted.
It’s best to research your choice of manufacturer and make before buying or leasing a vehicle, because some vehicles carry higher premiums as a rule.
The sooner you learn what coverages are worth paying for and what coverages are not, the sooner you will be able to reduce the cost of insurance overpayment.
For example, some cars are far too old to justify high collision or comprehensive damage costs.
The combined premium you pay every year may even exceed the price of car’s market value.
If you are able to cover the cost of repairs yourself, you can eliminate all coverages except liability (as required by most states) and only pay a small percentage of full coverage cost.
Should I raise my car insurance deductible in order to save money on my car insurance?
Raising your insurance deductible is an excellent way to lower your car insurance premiums.
Your deductible is the amount of money that you will pay out of pocket when you are the cause of an accident. In a no-fault state, this is the amount you will pay any time you are in a car accident.
Many car insurance companies only have two deductible options $250 and $500. However, there are several that offer you many different tiers from $0 to $2500-some will even allow you to choose a higher deductible.
While the benefit to a higher deductible is lower premiums, you do need to be cautious about choosing a deductible that is too high. It defeats the purpose of maintaining a high deductible if you can’t afford to pay the deductible after you have a car accident.
Accepting Personal Responsibility for Your Vehicle
Accepting more personal responsibility for your car or truck can help you reduce your insurance premium.
For example, reducing your overall mileage and using your vehicle for only personal traveling and errands can help lower your car payment.
Driving carefully and avoiding all accidents or traffic tickets for a period of at least three years can drastically lower your premium rate, as can taking a defensive driving course.
Read more: The Four Best Backup Cameras for Your Car
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Qualifying for Car Insurance Discounts
Fixing your credit problems and paying off your debt is a shrewd move since many insurance companies will consider an insured’s credit report and score before determining a rate.
Other discounts that might be available in special circumstances include a student discount, a discount for air bags, anti-lock brakes, and car alarms, and a multiple vehicle discount.
A multi-policy discount offers a reduction of premium rate by charging less for different insurance contracts, such as automotive homeowners and umbrella insurance.
In some cases, motorists who move to a safer neighborhood, or perhaps a more rural district, save money because of skyrocketing insurance rates for busy urbanites.
Every insured person would like to receive a loyalty discount overtime, but this isn’t always a likely scenario to look forward to.
Remember that insurance rates are cyclical and can be affected by a variety of industries including automotive, real estate, insurance and mortgage markets.
The only way to know for sure is if you compare different insurance rates and then choose the company and contract most appropriate for your driving habits and style.
Readmore: How to Get Help Paying for Car Insurance 2023
Compare Car Insurance Rates Online
Why not use our free comparison tool right now and compare several car insurance company products all at the same time?
Enter your ZIP code below to start comparing car insurance rates online now!
Case Studies: Different Ways to Lower Car Insurance Rates
Case Study 1: The Savvy Shopper
Amy was determined to find the best car insurance rates. Instead of accepting her current insurance company’s premium, she decided to shop around and compare quotes from multiple providers. After obtaining quotes from different companies using an online tool, Amy discovered that she could save significantly by switching to a different insurance company.
Case Study 2: The Safety Features Advantage
John was in the market for a new car and wanted to make sure he could get the best possible car insurance rates. He researched vehicles known for their safety features and decided to purchase a car equipped with anti-lock brakes, airbags, and electronic stability control.
When he approached insurance providers for quotes, he found that many of them offered discounts for vehicles with these safety features. By choosing a car with enhanced safety measures, John not only increased his peace of mind but also enjoyed lower car insurance rates.
Case Study 3: The Responsible Driver
Emily had a clean driving record and wanted to leverage that to lower her car insurance rates. She decided to take a defensive driving course to demonstrate her commitment to safe driving. Many insurance companies offer discounts to drivers who have successfully completed such courses.
After completing the course, Emily reached out to her insurance provider and provided them with the certificate of completion. As a result, she qualified for a discount on her car insurance premium, rewarding her responsible driving behavior.
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Frequently Asked Questions
How can I lower my car insurance rates?
There are several ways to lower your car insurance rates. Some effective strategies include:
- Shopping around and comparing quotes from different insurance providers.
- Maintaining a clean driving record with no accidents or traffic violations.
- Increasing your deductible, which is the amount you pay out of pocket in the event of a claim.
- Bundling your car insurance with other policies, such as homeowners or renters insurance, to qualify for multi-policy discounts.
- Inquiring about available discounts, such as safe driver discounts, good student discounts, or discounts for vehicle safety features.
- Considering usage-based insurance programs that track your driving habits and provide discounts based on your actual driving behavior.
- Removing unnecessary coverage options or reducing coverage limits if they exceed your needs.
Does my credit score affect my car insurance rates?
Yes, in many cases, your credit score can affect your car insurance rates. Insurance companies often use credit-based insurance scores as one of the factors to determine your premium. Maintaining a good credit score can potentially help you secure better car insurance rates.
Can taking a defensive driving course help lower my car insurance rates?
Yes, completing a defensive driving course can often help lower your car insurance rates. Many insurance providers offer discounts to drivers who have successfully completed an approved defensive driving course. These courses provide valuable knowledge and skills that promote safe driving habits.
What is the impact of my vehicle’s safety features on my car insurance rates?
Vehicles equipped with safety features can potentially lower your car insurance rates. Safety features such as anti-lock brakes, airbags, traction control, and electronic stability control can reduce the risk of accidents and injuries. Insurance companies often offer discounts for vehicles equipped with these safety features.
Can paying my premium in full save me money?
Yes, paying your premium in full instead of in monthly installments can often result in savings. Some insurance companies offer discounts for paying the entire premium upfront. If you have the means to pay the full amount, it’s worth inquiring about this option to potentially lower your overall insurance costs.
Free Car Insurance Comparison
Enter your ZIP code below to view companies that have cheap car insurance rates.
Secured with SHA-256 Encryption
Tracey L. Wells
Licensed Insurance Agent & Agency Owner
Tracey L. Wells is a licensed insurance agent and Farmers insurance agency owner with 23 years of experience. He is proud to be a local Farmers agent serving Grayson, Georgia and surrounding areas. With experience as both an underwriter and agent, he provides his customers with insight that others agents may not have. His agency offers all lines of insurance including home, life, auto, RV, busi...
Licensed Insurance Agent & Agency Owner
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.